We should not expect the transition team to arrive at solutions quickly; in fact, we would not want that to occur. As they are only six weeks into the process, an earlier announcement would make the process seem less intensive than the situation demands. A decision to move forward on KY (or any other strategy related move) should only come from the new management team. If not, I would be concerned that Herda is fighting to remain in position (remember, he can officially claim credit for the 625k). I do not think the market would find that a good solution. The only person to return to a previous CEO role and succeed is Steve Jobs and Herda ain't no Jobs.
So, what can we expect? Nothing real soon. Further complicating the process, in no particular order are: the current financial market crisis (which will make access to capital more difficult) and the fight over legislation currently in congress that calls for limited drilling for oil offshore, but allows for tax concessions and other considerations to promulgate the development of alternative energy; including CTL. (My limited POV is that a truncated drilling process would help our position.)
Both McCain and Obama are favoring alternative energy; though McCain would like to drill more extensively. As far as CTL is concerned, it is either/or for the candidates. Consequently, despite the lowering of oil prices, it is not expected prices will go lower than 65 p/b. This not only makes the CTL process profitable compared to light-sweet crude, but provides the alternative to foreign oil that drives the process; along with ancillary support from the environmentalists.
One final point for consideration...from a domestic security perspective, the military has been and will continue to be interested in securing alternatives to foreign oil. It cannot hurt to have a former general officer involved in the transition process.
Well, some of you wanted some things to chew on, that should suffice for now...
AI
